Yellen: The National Debt ‘Should Keep People Awake at Night’

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In testimony before Congress Wednesday, the outgoing Federal Reserve chair said she’s “very worried” about the trajectory of the nation’s debt, which now totals more than $20 trillion, $14.9 trillion of which is held by the public.

“Our current debt-to-GDP ratio of about 75 percent is not frightening, but it's also not low," Yellen said. "But when you look at, for example, CBO's long-term budget projections, it's the type of thing that should keep people awake at night. It shows a picture in which, as our population ages, expenditures on Medicare, Medicaid and Social Security grow more rapidly than tax revenues, and the debt-to-GDP ratio moves up. This should be a very significant concern."

As editor in chief, Yuval Rosenberg oversees all aspects of The Fiscal Times' website and email newsletter. His writing has appeared in publications including BusinessWeek, CNBC.com, CNNMoney.com, Fast Company, Fortune, Newsweek, Money and Time.